Latest news with #defenseproduction
Reuters
7 days ago
- Business
- Reuters
India File: Turning military might into big business
(This was originally published in the India File newsletter, which is issued every Tuesday. Sign up here to get the latest news from India and how it matters to the world.) The deadly India-Pakistan conflict last month showcased the military might of the South Asian foes, putting on display their modern fighter jets, missiles and drones. For India, military modernisation is about more than just holding its own against neighbouring rivals, as it seeks military self-reliance and, eventually, a place among the world's big arms exporters. That's the focus of our analysis this week. And India's central bank meeting this week is expected to cut rates for a third time in a row despite strong growth in the January-March quarter. Scroll down to our "Market Matters" section for more on that. ** China's factory activity cools in May as US tariffs hit ** South Koreans vote for president in hope of restoring stability after martial law crisis ** Europe bristles at US proposals at Asian gathering ** TSMC says tariffs have some impact but AI demand robust ** Work on $1 bln Trump Tower in Vietnam could start next year India's defence production and purchases were already on a fast growth track before last month's armed conflict with Pakistan, as the government sought to modernise the military, ease equipment shortages and boost domestic manufacturing. Now that campaign has gone full throttle. Within days after the fighting, India approved $4.6 billion in emergency procurement funds to acquire more military equipment. It also moved ahead with plans for a stealth fighter jet and the procurement of up to $470 million worth of drones. Just weeks earlier it approved the purchase of 26 Rafale naval fighter jets worth $7 billion. The objectives are twofold: to expand India's military industrial base - and the manufacturing jobs and exports that go with it - and to ease its dependence on foreign arms suppliers, which could be a vulnerability in times of conflict. India already has the world's fourth-largest military and is the fifth-biggest spender on defence, as it steadily builds up defences against neighbours China and Pakistan while diversifying its forces beyond predominantly Soviet-era fighter jets and military equipment. It has also been the number-one importer of arms globally throughout the last decade, taking in an estimated 10% share. Recent purchases have included modern fighter jets from France, transport helicopters and planes from the U.S., an advanced air defence system and aircraft carrier from Russia, as well as missile systems, radar equipment and drones from Israel. Washington wants a further increase in military sales to New Delhi with President Donald Trump even offering F-35 stealth fighter jets, as defence cooperation takes a central role in deepening India-U.S. ties. In recent years, however, India has stressed manufacturing more defence equipment and platforms at home, with global firms pushed to produce in India - either on their own or in collaboration with domestic partners - while increasing their exports of India-made equipment. India had already been making plenty of its own weaponry, from fighter jets and helicopters to warships, submarines and missiles. Private-sector entrants, often working with foreign partners, have also brought fresh energy to a sector long dominated by less-nimble state firms that often delivered behind schedule. India's military exports - including missiles, missile-related systems, munitions, small aircraft, patrol vessels and electronics - jumped 12% in the fiscal year to March to $2.76 billion. Five years back, they totalled just $1.07 billion. But foreign competition is stiff, both from high-tech producers such as France, Israel and Russia, and from low-cost rivals such as China and Turkey. A May report by Jefferies said that Prime Minister Narendra Modi's praise for how Indian equipment performed against Pakistan "points to further domestic manufacturing focus". The outlook for Indian defence firms, it added, looks bright with the rise in global military spending, up 9.4% in 2024 and the highest since the end of the Cold War. Europe could be a particularly good source of business as it considers sharply increasing defence spending while tensions mount with Washington. But there are challenges ahead. A KPMG report published last week listed budgetary constraints, red tape, dependence on imports and a shortage of skilled workers among the obstacles to growth in the arms sector. "Addressing these challenges requires strategic planning, increased budget allocations, streamlined procedures, robust policy frameworks, and fostering a culture of innovation and collaboration between the public and private sectors," the report said. Can India reduce its dependence on imports and become a major global defence supplier? Write to me at opens new tab Global makers of surveillance gear have clashed with Indian regulators over new security rules that require manufacturers of CCTV cameras to submit hardware, software and source code for assessment in government labs. The security-testing policy has sparked industry warnings of supply disruptions and added to a string of disputes between Prime Minister Narendra Modi's administration and foreign companies over regulatory issues and what some perceive as protectionism. Don't miss this report. Markets will be closely watching a meeting of the Reserve Bank of India's rate-setting panel on Friday after economic growth surpassed estimates in the January-March quarter. GDP growth hit 7.4% versus a year earlier but the central bank is still expected to cut rates for a third consecutive meeting, given subdued inflation that is expected to hold near the RBI's 4.0% target. Read here to catch up on growth in the January-March 2025 quarter and here for a Reuters poll on the expected outcome of the monetary policy review.
Arab News
25-05-2025
- Business
- Arab News
Turkiye's Erdogan, Pakistan's Sharif discuss boosting cooperation in defense, energy, infrastructure
ISLAMABAD: Pakistan's Prime Minister Shehbaz Sharif met Turkish President Tayyip Erdogan in Istanbul on Sunday and said the two countries would strive to boost economic cooperation, particularly in defense production, energy, IT, defense production, infrastructure development and agriculture. Sharif reached Istanbul on Sunday as the first stop in a five-day regional diplomacy tour that will also see him visit Iran, Azerbaijan and Tajikistan. Ankara expressed solidarity with Islamabad in a military standoff with India earlier this month when the two nuclear-armed neighbors traded missile, drone and artillery strikes for days, killing around 70 people on both sides. A ceasefire was reached on May 10. Ankara also maintains cordial ties with India but after Erdogan's expression of support for Pakistan in the recent conflict, Indian grocery shops and major online fashion retailers have boycotted Turkish products. Indian travel firms have also reported drop in Turkiye bookings over Pakistan support. A statement released by Sharif's office after delegation-level talks with Erdogan said the PM expressed 'heartfelt gratitude' to the government and people of Turkiye for its support during the conflict with India, the worst between the two nations in decades. 'Emphasizing the need to further strengthen economic cooperation, particularly through joint ventures and enhanced bilateral investment, the prime minister highlighted key sectors including renewable energy, information technology, defense production, infrastructure development, and agriculture as areas of mutual interest and potential,' the statement said. The two leaders also followed up on the implementation of key decisions taken during the 7th session of the High-Level Strategic Cooperation Council held in Islamabad on Feb. 13. 'Both sides agreed to take steps for achieving 5 billion USD annual bilateral trade target as agreed earlier by the two leaders,' the statement from Sharif's office said. Erdogan's office said he told Sharif it was in the interest of Turkiye and Pakistan to increase 'solidarity' in education, intelligence sharing and technological support in the fight against terrorism. Erdogan spoke by phone with Sharif on May 7 to convey his solidarity after India first hit Pakistan and Azad Kashmir with missiles. Leaders from the two nations had several contacts subsequently and it is widely believed that Turkiye played an important role, besides the US, UAE and Saudi Arabia, in convincing India and Pakistan to back off and agree to a ceasefire. The two nations have strong ties, both being largely Muslim countries and sharing historical links. Bitter rivals India and Pakistan have fought three wars, including two over the disputed region of Kashmir, since gaining independence from British rule in 1947. Both claim the Himalayan territory in its entirety but rule it in part. They both acquired nuclear weapons in 1998.
